#BitcoinWithTariffs Trump's Tariffs Could Boost Bitcoin: Here's Why
Bitcoin (BTC) briefly dipped below $76,000 after President Donald Trump announced an additional 50% tariff on Chinese imports, raising the total trade levy to 104%. Despite the initial market drop, crypto experts believe this growing trade war and weakening US Dollar (USD) may actually benefit Bitcoin in the long term.
Crypto as a Safe Haven Amid Economic Uncertainty
Binance CEO Richard Teng stated that the current macroeconomic instability may drive more investors toward crypto. While short-term volatility is expected, Teng emphasized that long-term holders still view Bitcoin as a strong hedge during economic turmoil.
"This environment could accelerate interest in crypto as a non-sovereign store of value," Teng noted on X.
Dollar Weakness Could Favor Bitcoin
Bitwise CIO Matt Hougan referenced a recent speech by White House economic advisor Steve Miran, which criticized the USD’s role in trade deficits and distorted currency markets. Hougan believes a weakening dollar will push investors toward alternative assets like Bitcoin and gold.
"I expect dollar weakness to be good for Bitcoin in the short term," Hougan wrote in a memo.
He added that global reserve systems may evolve from USD dominance to a more diversified model including Bitcoin.
Rate Cuts Could Fuel a Crypto Rally
VanEck’s Head of Digital Assets Research, Mathew Sigel, said that if tariffs slow GDP without causing inflation, the Fed could cut rates — a scenario historically favorable for Bitcoin.
"Rate cuts could recreate liquidity conditions under which Bitcoin thrives," Sigel noted.
Market Impact
Following Trump's tariff escalation, Bitcoin slid below $76,000, while the S&P 500 also dropped sharply, losing 6% and wiping out $2.5 trillion in value. The index later recovered slightly, ending the day with a 1.57% loss.
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